Correlation Between McEwen Mining and MyHealthChecked Plc
Can any of the company-specific risk be diversified away by investing in both McEwen Mining and MyHealthChecked Plc at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining McEwen Mining and MyHealthChecked Plc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between McEwen Mining and MyHealthChecked Plc, you can compare the effects of market volatilities on McEwen Mining and MyHealthChecked Plc and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in McEwen Mining with a short position of MyHealthChecked Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of McEwen Mining and MyHealthChecked Plc.
Diversification Opportunities for McEwen Mining and MyHealthChecked Plc
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between McEwen and MyHealthChecked is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding McEwen Mining and MyHealthChecked Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MyHealthChecked Plc and McEwen Mining is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on McEwen Mining are associated (or correlated) with MyHealthChecked Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MyHealthChecked Plc has no effect on the direction of McEwen Mining i.e., McEwen Mining and MyHealthChecked Plc go up and down completely randomly.
Pair Corralation between McEwen Mining and MyHealthChecked Plc
Assuming the 90 days trading horizon McEwen Mining is expected to generate 0.94 times more return on investment than MyHealthChecked Plc. However, McEwen Mining is 1.07 times less risky than MyHealthChecked Plc. It trades about -0.09 of its potential returns per unit of risk. MyHealthChecked Plc is currently generating about -0.14 per unit of risk. If you would invest 981.00 in McEwen Mining on September 25, 2024 and sell it today you would lose (186.00) from holding McEwen Mining or give up 18.96% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
McEwen Mining vs. MyHealthChecked Plc
Performance |
Timeline |
McEwen Mining |
MyHealthChecked Plc |
McEwen Mining and MyHealthChecked Plc Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with McEwen Mining and MyHealthChecked Plc
The main advantage of trading using opposite McEwen Mining and MyHealthChecked Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if McEwen Mining position performs unexpectedly, MyHealthChecked Plc can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in MyHealthChecked Plc will offset losses from the drop in MyHealthChecked Plc's long position.McEwen Mining vs. MyHealthChecked Plc | McEwen Mining vs. Xeros Technology Group | McEwen Mining vs. Arrow Electronics | McEwen Mining vs. Ocean Harvest Technology |
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Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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